16 FDR Nordic requirement depended on N-1m,normally 1000 MW Has to be activated with 50% within 5 sek and in total after 30 sec if frequency drops to 49,5 Hz. Decided on a weekly basis due to current N-1. Normally a nucler power plant (Forsmark 3 or Oskarshamn 3 or a tieline) Devided between the Nordic TSO depended on internal N-1.

24 Future development of the conditions for the Nordic balance and frequency control => Challenges to be taken into account More market integration More HVDC connections More renewable production plants More harmonization of rules within and between European regions with different prerequisites 24

25 Planned actions to improve the Nordic balance and frequency control => Principles to be implemented Better operations planning Physical production plans to detail the fulfilment of the hourly energy market schedules within the operating hour Adjustments to smooth out the physical productions within the operating hour Running forecast and adjustment of balances to minimise the need for fast reserves to handle the balancing in the operating hour Better and new balancing tools Automatic secondary reserves to smooth out the frequency within the operating hour 25

28 Statement The better operations planning, the less reserves (costs) needed to handle the real time operation! Planning: BRPs and TSOs 28

29 Content Balancing models BRP and TSO responsibility Quarterly production plans Alternative models Closing time for Elbas and Gate Closure for production plans and bids to the Regulating Power Market BRP and TSO needs Expected development and consequences More wind production More HVDC-cables More market integration April 14,

30 Models for balancing A varying mixture of emphasize on BRP and TSO responsibilities in different countries in Europe The current Nordic model A general prerequisite that BRPs balance the hourly production plans according obligations A general prerequisite that balancing after Gate Closure is handled by the TSOs. BRP plans are firm. More renewable production (wind), more small scale reserve providers (production, consumption) or other reasons may change the Nordic model in the future 30

31 Some prerequisites for the Nordic region Hourly resolution in the energy market in all countries but the requirements for production plans within the hour are different in all countries Hourly plans Quarterly plans (4 equal values are allowed) Quarterly plans (requirement for different quarterly values) 5-min set-point plan Common gate closure for production plans and bids to the Regulating Power Market but different gate closures in the Elbas market Balancing after gate closures is partly planned actions and partly real time actions Quarterly adjustment of production plans, planned activations in the Regulating Power Market Real time activations in the Regulating Power Market 31

38 Evaluation of model 1 and 2 Alternative 1: Does not lead to hourly imbalances for the producers Corresponds better to the variation in the consumption The quarterly plans in hour (n) must be determined before production plans in hour (n+1) are firm Alternative 2: The method will lead to imbalances for the producers (contracts with TSOs) Corresponds better to the ramping on HVDC-connections Can be used also for hourly production plans with only one step Easy to use for both producers and TSOs (?) Feed back indicates that model 2 is preferred. 38

40 Identified critical issues Too little time available to do needed considerations for BRPs and TSOs after closing time for Elbas partly due to: Too slow communication systems between NPS and BRPs (Elbas) Too slow communication systems between BRPs and TSOs (production plans) Unsatisfactory/time consuming IT-solutions to handle rescheduling at some BRPs Too much manual work with production control at some BRPs 40

41 Intra-day implications on Gate Closure for production plans Objective: Intra-day should be open as close to real-time as possible, limited by time needed by TSOs to assess system security Design must be compatible with system security Do Nordic TSOs need more time to assess system security than continental TSOs? (Answer on next sheet) 41

42 Nordic TSOs need time to assess system security because: A lot of bottlenecks in the Nordic grid on interconnectors and within countries A challenging ramping problem on HVDC-connections for the Nordic area (small system and unfavourable direction of ramping) Hourly settlement period. This means that quarterly imbalances partly is handled by manually activated TSO adjustments before real time. Manual activations for balancing. Slow and too unreliable reserve activations due to a lot of manual actions. An economically efficient but time consuming arrangement for balancing where several TSOs are involved (common bid ladder). Yes (See question on previous sheet) 42

43 Alternative possibilities for gate closures - 1 Harmonize closing time for Elbas to 1 hour before operating hour and keep gate closure time for plans/bids at 45 min before operating hour Pros A compromise between BRP and TSO needs for time to do assessments given 1 hour closing time for Elbas Cons Very short time for assessments for both BRPs and TSOs Some potential bids to the RPM may be lost 43

44 Alternative possibilities for gate closures - 2 Harmonize closing time for Elbas to 1 hour before operating hour and change gate closer for plans/bids to 30 minutes before operating hour Pros The BRP imbalance may be reduced The BRPs will have more time to assess plans and bids Cons Too short time remaining for TSOs to do assessments and planned actions Will lead to increased imbalances due to ramping on HVDC connections and/or need for more automatic reserves The risk for overload in the grid will raise 44

45 Alternative possibilities for gate closures - 3 Harmonize an earlier closing time for Elbas Pros The stress for BRPs will be reduced and consequently the quality of the production plans and bids to the RPM will be raised The stress on TSOs to plan and execute needed actions before real time will be reduced Cons The BRP imbalance will increase (how much?) 45

46 Expected development Substantial increase in trade volumes for BRPs close to operating hour Increased wind production Increased market integration Stronger grid connections (more capacity) including more HVDC-cables More complex planning for BRPs due to shorter time resolutions in markets and plans Quarterly markets and quarterly or maybe even minute based plans Substantial increase in imbalance volumes and need for detailed TSO planning before operating hour More automatic balancing which needs to be scheduled (HVDC, LFC-product) Better and faster IT-solutions will have to be developed 46

47 Concluding remark There will be more time critical planning for both BRPs and TSOs in the future! The sencitivity for market closing time on imbalances must be studied further. Difficult to satisfy both the market and operational needs. 47

51 Ramping Change of power flow is restricted Maximum 600 MW change in flow from one hour to the next is applied separately on all HVDC connections Ramping speed 30 MW/minute per cable 6 connections together 180 MW/minute Start and stop 10 minutes before and after hour shift Continental requirement even tighter, 5 minutes before/after 51

53 Influence to the market Analysis based on NPS data Kontek Skagerrak KontiSkan Nov Sep 2008 and Jan May Data collection stopped during market coupling Cases without restriction and with ramping 600/800 MW Impact Congestion income Bottleneck hours Area Prices What is the socioeconomic cost? 53

57 Alternative methods Counter trade Counter trade is well suited for the elimination of temporary transmission restrictions or ones with limited size. However, it is not a technically and commercially sensible solution in all circumstances Rules have to agreed with Continental TSOs According to earlier Nordic studies counter trade has an impact on the bidding behaviour and undermines the credibility of the Elspot price. On the other hand there is too low liquidity in the intra-day and balancing markets Counter trade is not an optimal solution and currently not relevant as an alternative 57

58 Alternative methods - Increased automatic reserves Increased volume of reserve automatic reserves (LFC) will make it possible to reduce the current restriction Costs for reserves seems to be higher than the current market costs associated to ramping restriction Capacity out of the energy market 58

60 Conclusion Way Forward Today's practise most feasible Counter trade is not an optimal solution Impact of the new cables has to be analysed This may change in the future More automatic reserves (LFC) Quarterly production plans, development of control systems, development of exchange rules and quarterly settlement, will make it possible to reduce the restrictions in the future. Further evaluation needed, if an optimisation procedure could be introduced in the Elspot algorithms 60

68 Common needs Poor frequency quality is a symptom! Increases risk of an major incident when frequency is outside the operating band We need LFC and more automatic reserves Frequency (Hz) MW ~ Hour shift T April 14, 2010 REF - DW ETSOE SR workshop 68 * See page 15

69 System stability with Secondary reserves A typical day with measured frequency and a simulated result with unlimited LFC. Current performance is in grey and with LFC result is in blue*. F in Hz Operating Level HVDC ramping effect * Utilised max +980 and -580 MW 06:00 12:00 18:00 Time (Hours) April 14, 2010 REF - DW ETSOE SR workshop 69

70 Pilot progress LFC functionality implemented in the TSO SCADA system Simulation is completed Two pilot partners have been identified one in Norway and one in Sweden Communication tests complete in Norway Pilot test in Norway will be complete by May Pilot test in Sweden will follow in Q3 April 14, 2010 REF - DW ETSOE SR workshop 70

71 Time-line for introduction A proposal for volume is +/- 600MW (under discussion in ENTSO-E) Product will be a automatically activated reserve from a Load Frequency Control application Implementation planned from autumn 2010 onwards Includes a pre-qualification of providers Experiences from pilot project will be taken into account April 14, 2010 REF - DW ETSOE SR workshop 71

72 Summary The reserve toolkit is no longer enough to stabilize Nordic frequency! LFC is a new type reserves with automatic activation A proposed volume for the Nordic area is +/- 600MW Implementation planned from autumn 2010 onwards April 14, 2010 REF - DW ETSOE SR workshop 72

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